Dec 26 2012
Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company") is pleased to provide the following update on the Company's on-going exploration programs:
Abitibi ("AGB") Grassroots Exploration Project - Québec and Ontario:
Diamond drilling activities will resume early in the 1st quarter of 2013 on the Company's 100%-owned gold prospects located in the Abitibi Greenstone Belt ("AGB") region. During the course of the last year, in response to market conditions, the Company curtailed the majority of its field expenditures on its self-funded exploration activities and instead directed activity primarily on in-house project generation activities, property compilations and assessment report filing.
Golden Valley Mine's exploration activities over the past several years have been mainly focused on preliminary fieldwork conducted over the company's 100%-owned properties, with the objective of upgrading and advancing each property to the group of "drill-ready" prospects' for the Company's AGB Project.
Preliminary fieldwork is expected to consist of conventional "boot and hammer" prospecting and sampling and, where warranted, the establishment of mini grids over priority target areas (i.e. surface showings and previously untested airborne geophysical anomalies) to facilitate the completion of detailed ground geophysical surveys. The Company's AGB grassroots exploration project is principally directed towards identifying prospective targets for both precious (Au-Ag, PGE) and base-metals (Cu-Zn, Ni-Cu & Co).
At this time, the Company has identified drill targets on twenty-one (21) individual prospects, that in total include fifty-five (55) "higher priority targets" for an aggregate amount of approximately 7,445 metres of proposed diamond drilling including properties optioned to Golden Cariboo Resources Ltd. and in respect of which Golden Valley Mines is the program operator (refer to the Company's June 11, 2012 news release for details of the drill ready properties).
The 2013 exploration budget is presently allocated at approximately $875,000 and is anticipated to consist primarily of diamond drilling with certain additional drill target definition activities over newly acquired properties. The program emphasis will be directed primarily at gold targets. Specific property parameters, exploration program details and results will follow in subsequent news releases.
Option/Joint Venture Funded Programs:
Golden Cariboo Resources Ltd. ("GCC-TSXV") - 12 Abitibi Greenstone Belt Property Option - Québec and Ontario:
Planning for the first year exploration program is underway with an initial work commitment of $250,000 (refer to the Company's January 18, 2012 news release for details). The property portfolio consists of a group of 12 properties located in Québec (9) and Ontario (3). See attached Abitibi Greenstone Belt map for prospect locations.
The exploration program is expected to consist of modest detailed geophysical surveying, prospecting and sampling as well as drill programs over high priority gold properties. Once the programs have been finalized and approved by Golden Cariboo, additional details will be provided. Golden Valley Mines is the project operator.
Big North Graphite Corporation ("NRT") - Luciana Prospect Option - Abitibi Greenstone Belt - Québec:
A $100,000 first-phase exploration program has been approved and will commence when field conditions permit in 2013. The program is anticipated to consist of an airborne survey and follow-up program of prospecting and sampling with the objective of defining target areas on the property for the establishment of detailed mini-grids, geological mapping and ground geophysical surveys, with the objective of defining drill targets. Golden Valley Mines is the project operator.
The Luciana Prospect is prospective for both gold and REE (Rare Earth Element) mineralization, as it straddles the Cameron Lake Deformation Zone, well known for its spatial association with gold mineralization, and its proximity to the Grevet Carbonatite Complex that is associated with REE mineralization as well as known occurrences over the southern part of the property. Big North Graphite has until May 30, 2013 to incur the first tranche of expenditures consisting of $250,000 on the Luciana Prospect per the terms of the amended option agreement.
Sirios Resources Inc. ("SOI-TSXV") - Cheechoo Gold Project - James Bay, Québec
Gold Valley Mines granted an option (the "SOI Option") to Sirios Resources Inc. ("Sirios") to acquire the Company's 60% interest in and to the Sharks and Cheechoo prospects (the "S&C Properties") located in the James Bay area of Northern Quebec and in which Sirios currently holds a 40% interest. For additional details on the terms of the option agreement, please refer to the Company's June 15, 2012 news release.
As reported to date by project operator Sirios, a total of eight diamond drill holes of NQ caliber have been completed for a total of 938 metres. Sirios further reported that more than 600 core samples are currently being prepared to be sent for assaying at the ALS Chemex laboratory in Val-d'Or. For additional details on program results made to date by Sirios on the S&C Properties, please refer to Sirios' continuous disclosure documents available for viewing by the public through the internet at the SEDAR website (www.sedar.com) by accessing Sirios' issuer profile or by visiting Sirios' website at www.sirios.com.
Mr. Glenn J. Mullan, is the Qualified Person (as that term is defined in National Instrument 43-101) who has reviewed this news release and is responsible for the technical information reported herein.